Local Housing Allowance
Local Housing Allowance (LHA) is a way of working out new claims for housing benefit for tenants renting accommodation from a private landlord.
It also affects tenants already getting housing benefit who move into accommodation rented from a private landlord.
If you live in council accommodation or other social housing, LHA does not affect you.
With LHA, your benefit is not usually based on the property you live in. It is usually based on a rate depending on:
- who lives with you
- which area you live in.
The LHA rate is a maximum figure used to work out your benefit. You will not necessarily receive the whole amount as it will be affected by other things such as:
- how much your rent is
- whether anyone living with you is expected to contribute to your rent
- how much money you have coming in
- what savings you have.
What is the maximum LHA rate I could get?
To work out your maximum LHA rate please view our 'What LHA rate applies to me?' page.
You can also use the calculators on Directgov or phone the housing benefit call centre on 0345 302 2312. The lines are open Monday to Fridays 8.30am to 6pm and Saturdays 9am to 1pm.
Why was Local Housing Allowance brought in?
LHA has been introduced nationwide. It gives tenants more choice in where they live and it's fairer too. This is because with LHA:
- you are entitled to the same amount of benefit as people in the same circumstances as you
- you can find out how much benefit you can get before you rent a property
- you can decide how much of your benefit you want to spend on renting a property
- you can usually get your benefit paid to you. It is up to you to pay the rent to your landlord
- you can find out about your benefit more quickly than before.
How do I get my benefit if Local Housing Allowance applies to me?
Usually you will have your benefit paid directly to you. It will be paid directly into your bank or building society account, if you have one, or by cheque.
If you do not already have a bank or building society account, you may want to set one up. That way you can arrange to pay the rent to your landlord automatically, using a standing order.
You can get advice about opening and running a bank account from any bank or building society. You can also get advice from a welfare organisation such as Citizens Advice.
It is up to you to pay the rent to your landlord. If you don't pay your rent, you may be taken to court and evicted from the property.
Can I have my benefit paid direct to my landlord?
Your benefit will be paid to you unless you are likely to have difficulty paying your rent, or it must be paid to your landlord. We will have a safeguard policy which will make sure vulnerable people are not badly affected by the new rules.
If you are worried about managing your money, ask us if we can help. In some cases we may be able to pay your rent to your landlord.
What will happen if I use my benefit for something else?
Your benefit is there to help to pay your rent with. If you do not use your benefit to pay your rent, your landlord may take you to court or try to evict you and you may lose your home.
Changes of circumstance
If you are getting Housing Benefit and you move to a new address or other circumstances change, you should tell us straightaway. You may need to make a new claim for housing benefit.
'Local housing allowance - find out how it affects you' is a good source of information about the Local Housing Allowance however there have been a number of changes to the way it is calculated and awarded since it was written. Please look at the changes below in conjunction with it.
Changes to Local Housing Allowance since April 2011
The way that Local Housing Allowance rates are worked out changed from April 2011.
From April 2011 we will:
- Remove the five bedroom Local Housing Allowance rate so that the maximum level is for a four bedroom property.
- Introduce absolute caps so that Local Housing Allowance rates cannot exceed:
- £250 for a one bedroom property
- £290 for a two bedroom property
- £340 for a three bedroom property
- £400 for a four bedroom property
In addition, the £15 weekly excess that some customers can receive under the Local Housing Allowance arrangements will be removed.
From October 2011 we will:
- Set Local Housing Allowance rates at the 30th percentile of rents in each Broad Rental Market Area rather than the median.
Single and under 35
If you are single, aged under 35 and renting in the private sector (not social housing), you might be affected by a change in housing benefit assessment criteria that took effect in January 2012.
From January 2012, anyone under 35 will only be able to claim housing benefit on a shared accommodation rate to help with their rent (rather than being able to claim for self-contained one-bedroom accommodation).
This means you may only be entitled to the lower rate of housing benefit for a room in shared accommodation if all of the following apply:
- you are a single person
- you are occupying a one-bedroom self-contained accommodation in the private rented sector
- your housing benefit is due to be reviewed from January 2012 onwards
- at the date of the review you will be aged over 25 or over but under 35 years, and
- you are not covered by any of the exemptions on sharing accommodation.
Previously, single people who are aged under 25 could only claim a shared accommodation rate to help with their rent (unless certain exemptions apply). This was amended as part of a number of changes to welfare in 2012 and 2013.
For more information about changes to housing benefit in 2011, 2012 and 2013, visit www.direct.gov.uk.
Where to get more information
If you want to know more about the changes and how they affect you: